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In the autumn of each year, the European Commission adopts its “Enlargement package” – providing a detailed assessment of the state of play and the progress made by the enlargement countries on their respective paths towards the European Union, with a particular focus on implementing fundamental reforms, as well as clear guidance on the reform priorities ahead.
Separate chapters are developed for the knowledge economy, i.e. the areas that the Western Balkans Info Hub focuses: “Science and Research” (chapter 25) and “Education and Culture” (chapter 26 which includes also a focus on higher education) as well as the chapter “Enterprise and Industrial Policy” (chapter 20 which includes a focus on innovation in the business sector) are referenced below. Further chapters address topics including fundamentals such as the functioning of democratic institutions, rule of law, economic criteria, etc., intellectual property law, digital transformation, enterprise and industrial policy, green agenda and sustainable connectivity, agriculture, external relations and many more.
For the full report on Serbia see the Report and Factsheet.
Chapter 25 – Science and Research
Serbia has a good level of preparation in science and research. No progress was made in the reporting period. Although the action plan for the Smart Specialisation strategy and the strategy for the development of a start-up ecosystem continued to be implemented, this was overshadowed by negative developments affecting the autonomy of research institutes and universities.
The Commission’s recommendations from last year were not implemented and therefore remain valid. In the coming year, Serbia should in particular:
→ ensure the autonomy of research institutes and universities and the respect of academic freedom and freedom of scientific research, in line with the principles of the European Research Area;
→ increase its national funding for research and innovation and continue implementing the Smart Specialisation Strategy;
→ align its legislation with the European Research Infrastructure Consortium Regulation in line with the Reform Agenda.
The EU provides significant support to research and innovation. All Member States can participate in the EU’s research and innovation programmes and benefit from them, especially where there is scientific excellence and solid investment in research and innovation.
On research and innovation policy, Serbia is implementing its 2021-2025 strategy for development of a start-up ecosystem. Work is ongoing to align with the European Research Infrastructure Consortium regulation. During the reporting period, worrying developments took place impacting the institutional autonomy of research and academic institutions and academic freedom. In March 2025, the government adopted two Decrees restricting the amount of time academic staff can spend on research activities. Their implementation resulted in a decrease in the salaries of teaching researchers to only 12.5% during the interruption of the academic year and retroactive payments of full salaries conditioned to the completion of the 2024/2025 academic year. These measures also undermine the eligibility of Serbian researchers to apply to certain European Research Council (ERC) grants and limit the effectiveness of the cooperation between academia and the private sector as part of the Quadruple Helix.
In July and August, central and local authorities dismissed board members of two major research institutes, and the management in one of the two, and nominated new members. Some of these decisions are challenged before the courts for allegedly not following the requirements set in the Law on Science and Research. The Science Fund is operational as a funding mechanism with an increasing number of 13 funded programmes under a total budget of EUR 106.5 million. The national level of investment in research remains low at 0.88% of GDP in 2023 (0.92% in 2022). Serbia is in the fifth year of implementing its Smart Specialisation strategy, with the second action plan extending to the end of 2025. Concerning innovation measures, the Innovation Fund, four science and technology parks and 14 new incubators continue to be active with increasing financial contributions.
While the Innovation Fund’s Katapult accelerator and Serbia Ventures Programme (with investments of up to EUR 5 million) have positive impact on the innovation ecosystem, the number of validated European patents is modest. Further integration into the new European Innovation Agenda and activities of the European Innovation Council is strongly encouraged. Serbia is an Emerging Innovator in the European innovation scoreboard, with a score of 51.5 in 2025 – above the average of the emerging innovators group. The performance gap with the EU is nonetheless increasing. Private sector research and innovation expenditure is increasing. As regards the EU Framework programmes, Serbia takes an active part in Horizon Europe as an associated country. Serbia is also successfully participating in EUREKA and the European Cooperation in Science and Technology.
Chapter 26 – Education and Culture
Serbia has a good level of preparation in education and culture. No progress was made overall in the reporting period. While some positive steps were taken, in particular by further consolidating the national qualifications framework system, the delivery of quality education was impacted by the discontinuity of education throughout the 2024/2025 school year, measures worsening the working conditions of teaching staff and dismissals and nonrenewals of contracts of a high number of teaching staff and principals at the start of the new school year.
The Commission’s recommendations from last year were partially implemented. In the coming year, Serbia should in particular:
→ support children and young people, notably the most vulnerable, by bridging learning gaps during the school year 2024/2025, improve the working conditions of teaching staff and ensure respect of academic freedom, in line with the principles of the European Higher Education Area and the Bologna Follow-up Group;
→ increase the number of children attending early childhood education and care, in particular children from disadvantaged backgrounds;
→ ensure that the policy and institutional framework for quality assurance in higher education fully complies with the recommendations of the European Association for Quality Assurance in Higher Education.
The EU supports cooperation in education and culture through funding programmes and the coordination of Member State policies through the ‘open method of coordination’. The EU and the Member States must also prevent discrimination and ensure quality education for children of migrant workers, including those from disadvantaged backgrounds.
In the area of education and training, the policy framework and the institutional framework are in place. There is a certain vulnerability for corruption in the sector as a whole and for higher education in particular. Serbia continued to implement its 2030 education strategy and its action plan with delays. There was a discontinuity in the delivery of education on all levels, especially in higher education, throughout the 2024/2025 school year due to students’ protests and blockades which were joined by education staff. Education delivery resumed gradually according to a new calendar to mitigate the impact of missed classes. During protests, cases of attacks and threats against students and professors were recorded.
At the beginning of the 2025/2026 school year, a significant number of principals were dismissed and temporary contracts of some teachers in primary and secondary education were not renewed. Serbia’s Commissioner for the Protection of Equality launched proceedings over complaints of discrimination based on political or union activity. This raises concern in terms of erosion academic freedom, institutional autonomy and the quality of education in the context of persistent teacher shortages. In March 2025, Serbia adopted amendments to four framework laws concerning primary, secondary and higher education. The draft amendments to the Law on Textbooks adopted by the government which would give exclusive rights to a public publisher for producing textbooks for subjects such as the Serbian language, geography, history and arts risk affecting the quality of textbooks and education and politicizing curriculum.
The level of public spending on education in Serbia in 2023 is modest around 3.2%, which is below the EU average of 4.6% of GDP. Public expenditures for higher education increased by 20%, namely for staff, material costs and scholarships. At the same time, a severe cut of salaries and operational costs across the education system was made on the account of discontinued delivery of classes in the context of the protests but are retroactively being paid conditioned with the completion of the 2024/2025 academic year. The student population continues to decrease due to negative demographic trends and emigration. The coverage of children with early childhood education and care education (ECEC) is stable at 62.1 % in 2024 (61.2% in 2023) for age 6 months to 6.5 years. However, further efforts are needed to increase participation in preschool education, including through ensuring equitable ECEC for the most disadvantaged children. The enrolment rate in mandatory ECEC has been broadly stable, though decreasing to 96.2% during the 2024/2025 school year (97.2% in 2023/2024).
In December 2024, Serbia adopted new standards of achievement for all three cycles of pre university education. The introduction of final examinations in secondary education was postponed to the 2028/2029 school year. The rate of early school leavers slightly increased to 6.2% in 2024 (5.8% in 2023). Serbia should commit sufficient funding and human resources for sustained participation in international assessments. Findings of the TIMMS 2023 survey indicate more favourable results among fourth graders, where Serbian students achieved results above the international average in mathematics and science. Serbia conducted the TALIS 2024 but postponed the PISA 2025 testing to autumn 2025. Serbia should continue to modernise the curricula to improve VET relevance and further develop the national work-based learning model for VET. The employment rate of VET graduates (aged 20-34) is low but slightly increased to 67.3% in 2024 (65.6% in 2023). The lack of opportunities for reskilling and upskilling is a structural barrier to youth and adult employment which should be addressed.
Work on the recognition of informal and non[1]formal training is progressing slowly and is yet to be scaled up systematically. Serbia is a member of the European Alliance for Apprenticeships (EAfA) and should encourage regional and local stakeholders to join the network. Serbia is a member of the European Higher Education Area (Bologna process). Three Serbian universities participate in European Universities alliances. Amendments to the Law on Higher Education which brought in the possibility of micro credentials should be fully operationalised to facilitate additional lifelong learning opportunities. Lifelong learning participation decreased to 5.5% in 2024 (6.1% in 2023). On quality assurance in higher education, no progress was made in the implementation of recommendations of the European Association for Quality Assurance in Higher Education (ENQA). An application for renewed membership in ENQA has yet to be submitted by the National Accreditation Body after its suspension in 2020. First qualification standards for higher education have been developed but are yet to be linked with quality assurance procedures.
The attainment of tertiary level qualifications for people aged 25-34 slightly increased to 37.2% in 2024 (34.7% in 2023), significantly below the 2030 EU target of 45%. Measures to reduce drop-out rates and segregation need to be enforced focusing also on the inclusion of women and girls in education and training. The number of students supported by individual education plans increased significantly in the 2024/2025 school year. Children with disabilities still do not have access to teaching assistants. The issue of children in residential institutions who are not attending education or have dropped out needs to be adequately addressed. Free textbooks are provided for an extended number of vulnerable categories of students.
The education system has demonstrated flexibility in integrating migrants. The assistive technology resource centres need to become fully operational to provide additional services for inclusive education. The Criminal Code was amended with rules setting out penalties for assault and violence against people employed in education. Mechanisms for prevention of, and protection against, violence and discrimination need to be fully implemented, and monitoring strengthened. Serbia’s digital transformation of the education system is ongoing including developing infrastructure and teacher digital competencies. Although the pre-university level curricula include mandatory subjects to develop digital skills, according to the 2023 International Computer and Information Literacy Study survey 67% of students lack sufficient competency to use digital technologies independently, safely and with critical thinking. The development of the education management information system still requires further consolidation.
Further efforts are needed to align digital education with the EU’s 2021-2027 digital education action plan. Serbia has yet to incorporate green and environmental topics into its curricula. Serbia has been successfully participating in the Erasmus+ programme as an associated country since 2019. In 2024, Serbian organisations participated in 794 Erasmus+ projects, of which in more than 230 projects as project coordinators for a total contracted grant amount of EUR 19.4 million. Serbia is participating in all the European Education Area 2021-2025 working groups.
Regarding youth, Serbia is implementing the youth strategy and the Youth Guarantee action plans. The expenditures from the national budget for youth policy increased by 25% in 2025 compared to 2024. The legislation on youth, volunteering and internship has not been revised yet. The National Youth Council was re-constituted in October 2024. Despite increased efforts, youth policy and support mechanisms remain unevenly developed at local level.
On sports, Serbia is successfully implementing the third call for proposals for mobility projects in the area of sport and continued to participate in the European Week of Sport.
On culture, Serbia has been implementing its strategic priorities for cultural development for the period 2021-2025. However, the adoption of the overarching cultural development strategy is still pending. Serbia has ratified and continues to implement the 2005 UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions at both national and local levels. Serbia fully participates in the 2021-2027 Creative Europe Programme. The ‘Creative Europe Festival,’ held across the country, further increases visibility and awareness of the programme. The Serbian cultural and creative sector has over the past year faced challenges with reduced funding and limited institutional support.
Chapter 26 – Enterprise and Industrial Policy
Serbia is moderately prepared on enterprise and industrial policy. Limited progress was made, in particular with the adoption of five pieces of legislation to implement the Law on the governance of state-owned enterprises (SOEs).
The Commission’s recommendations from last year were implemented to a limited extent, and therefore remain largely valid. In the coming year, Serbia should in particular:
→ further improve the predictability of the business environment, in particular by substantially increasing the proportion of legislative acts opened for public consultation;
→ in line with the Reform Agenda, adopt outstanding implementing legislation to ensure proper implementation of the SOE law;
→ adopt a new action plan to continue the implementation of the industrial strategy and further increase resources for financial and technical support to SMEs.
EU industrial policy strengthens competitiveness, facilitates structural change and encourages a business-friendly environment that stimulates small and medium-sized enterprises (SMEs).
Concerning industrial policy, the institutional and policy framework is largely in place. Serbia continues to implement its strategy for industrial development 2021-2030 and the accompanying 2024-2025 action plan. Serbia should timely adopt a new action plan for the subsequent period. Serbia continues to use budgetary subsidies for newly created jobs as an incentive for foreign direct investments. This approach is not consistent with its industrial policy goal of privileging value added over labour cost, and with the continued need to better integrate SMEs into domestic and international supply chains.
Regarding enterprise policy, reforms concerning the ownership and management of state owned enterprises (SOEs) are advancing primarily through the implementation of the SOE strategy and related action plans, and the new SOE law which entered into force in September 2024. Proper implementation of the new law is dependent on 11 pieces of implementing legislation, of which 5 have been timely adopted. Serbia continues to make progress on its privatisation and restructuring process of over 500 SOEs, in which 41 companies remain. Serbia’s SME development strategy for 2023-2027 is being implemented. However, Serbia has yet to adopt an action plan covering 2025-2027.
Serbia should improve the predictability of the business environment, with an emphasis on ensuring that all relevant legislation undergoes timely and comprehensive public consultations, including through effective communication of the e-consultation portal. Serbia has a range of enterprise and industrial policy instruments in place, including grants, subsidies, tax exemptions and guarantee schemes. The budget for measures supporting SMEs and entrepreneurship is growing but remains modest. Serbia participates in the SME Pillar of the Single Market Programme. On combating late payments in commercial transactions, Serbia’s legislation is largely aligned with the EU acquis. However, Serbia continues not to be aligned with its rules on payments, indemnity interest rates, expedited recovery procedures and compensation.
On sectoral policies, Serbia has a number of sector-specific strategies including in the areas of energy, transport, education, media, artificial intelligence (see also chapters 10 on Digital transformation and media, 14 on Transport, 15 on Energy and 26 on Education and culture) and tourism. In addition, Serbia is implementing its smart specialisation strategy.
For more information on other chapters see the Report and Factsheet.